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June 28, 2022
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Foundry launches Bitcoin mining platform market

FoundryX is a new marketplace that combines buyers and sellers of Bitcoin mining platforms

Bitcoin mining underwent a major transformation last year when a crackdown in China prompted much of the industry to move to North America. That’s one of the reasons why Foundry, a fast-growing North American mining company, is launching a new market to match buyers and sellers of used Bitcoin mining platforms.

Called FoundryX, the new service promises to act as an eBay of sorts for the mining industry, exploiting its relationships with hundreds of buyers and sellers and serving as a trusted intermediary for a company once known for secretive or dubious practices.

“People want transparency.”

Said Jeff Burkey, Foundry’s vice president of Business Development, who told Decrypt that the purchase of Bitcoin mining platforms has historically required an act of faith involving wire transfers to China.

Foundry, which also operates a mining pool and operates its own machines, claims to have facilitated more than $125 million in equipment sales in 2021 and to have secured more than 40,000 machines for delivery by 2022.

In the early days of Bitcoin, people exploited it using home laptops or even cell phones. In 2015, however, Bitcoin’s growing popularity demanded that future miners gain additional computing power in the form of specialized machines built with custom chips.

Today, these machines typically cost thousands or tens of thousands of dollars and are produced by two China-based manufacturers, Bitmain and MicroBT. According to Foundry CEO Mike Colyer, crypto’s crackdown in China is targeting domestic activities, but not machine-making for specialists.

But Colyer added that the crackdown has created confusion as Chinese miners look to move their machines out of the country or sell them to buyers in other countries, including the United States. This opened up an opportunity for the Foundry as it helps both buyers and sellers navigate the complicated process of shipping mining rigs halfway around the world.

Although the Foundry is less than two years old, it has grown rapidly. The company initially focused on its own Bitcoin mining operations, but soon expanded to help other US companies obtain and finance equipment, and in February launched a pool that emerged as one of the largest in the world.

A subsidiary of the giant crypto conglomerate Digital Currency Group, Foundry is also playing a strategic role for its parent company, selling financial and administrative services offered by Genesis, another DCG company, to its mining clients.

Source: Decrypt

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